External Agreements 
This function allows SAP Transportation Management (SAP TM) to use agreements stored in an external system when calculating transportation charges. When processing the calculation sheet and checking the relevant rates, the SAP TM system connects to the external system to determine the rates. SAP TM can obtain accurate rates or estimated rates from the external system, depending on whether you specify the reference number of the external system's agreement.
Integration
This function is used in the charge calculation process, which is used in the following SAP TM components:
For more information about the charge calculation process, see Charge Calculation.
Prerequisites
To use this function, you have established a connection from SAP TM to the external system by configuring the following settings:
You have integrated Web services into your SAP TM system.
You have defined the bindings or logical ports for the Web service by using transaction SOAMANAGER.
You have defined your user access by using transaction SE38 and executing the report Secure Store Logon for SMC3 (/SCMTMS/TCC_SEC_STORE_LOGON).
You have created a product freight group in Customizing for SCM Basis under
Master Data 
Transportation Lane Transportation Service Provider Profile
Define Product Freight Groups 
.You have created a freight code set with freight codes and assigned the freight codes to the product freight group in Customizing for SCM Basis under
Master Data Transportation Lane
Transportation Service Provider Profile Define Freight Code Sets, Freight Codes, and Determination .You have defined the connection parameters and charge types and mapped the external system's parameters to the calculation bases in SAP TM by using transaction SM34 and accessing the /SCMTMS/VC_SMC3 view cluster.
Activities
To use an agreement stored in an external system, enter External System in the Calculation Method Type field of the agreement's calculation sheet.
To obtain accurate rates from the external system, in the agreement specify the reference number of the external system's agreement.
To obtain estimated rates from the external system, do not specify the reference number of the external system's agreement.